The German index has bounced a bit in Frankfurt early on Friday, as the market looks to print the first green daily candle in five days. Nonetheless, technical traders will be happy.
DAX
The German index has bounced a bit in Frankfurt early on Friday as we are back above the €26,000 level, which is snapping a 4-session losing string of sessions. And despite the fact that we are still red on the week, we are looking for support in an area that is necessary to find it.
Some of the leading movers are Infineon, which is up about 2%, Siemens Energy, and tech and utility companies are all moving in the right direction. Unfortunately, there are some out there that are dragging the recovery down a bit, such as Bayer and Rheinmetall.
Top Regulated Brokers
Yesterday was a bit ugly, but it looks like things are turning on the upside. German Flash PMI split the difference, and the index took the manufacturing half. The manufacturing was 54.1 versus 52 expected, while the services were 38.5 versus 50.1 expected. The overall composite was 51 versus 51.3 expected.
Macro Data and Key Technical Support Levels
The Bund 10-year yield is right around 3.25%, holding a 15-year high, but the real story might be the Middle East and what's going on there. Defensive names are taking it on the chin a little bit today, but ultimately there are a couple of other things to watch coming soon. For example, Tuesday has the ZEW, which is an announcement that a lot of traders will watch closely.
Ultimately, this is a market that's been in an uptrend for a while, and that does not seem to have changed at this point in time. A simple pullback to a previous resistance area has been formed, and the bounce is starting to play out. Classic bullish behavior.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.